Minnesota Gov. Tim Walz was aware of the widespread welfare fraud in his state “for years” and “repeatedly failed to act,” alleges a congressional report released on Wednesday.
Walz and the state’s Attorney General Keith Ellison are set to testify Wednesday about the $9 billion scandal before the House Oversight and Government Reform Committee.
The report, which also alleges that Ellison knew of the welfare fraud in Minnesota, draws from interviews with state employees and whistleblowers.
“Senior officials in the governor’s office and Attorney General Ellison’s office were aware of credible fraud concerns in Minnesota’s social services programs as early as 2019 within the Department of Human Services (DHS) and by April 2020 within the Department of Education (MDE), despite later public statements by Governor Walz suggesting otherwise,” the report says.
The committee and staff conducted transcribed interviews with nine key current and former Minnesota state officials. The investigation focuses on alleged money laundering and fraud in Minnesota’s social services programs, uncovered by the U.S. Attorney’s Office for the District of Minnesota.
The report, titled “The Cost of Doing Nothing,” further alleges retaliation against whistleblowers, including surveillance, and quotes some officials as not acting against suspected fraud out of fear of being labeled a racist.
“As a result, potentially billions of American taxpayer dollars were allowed to flow to fraudulent actors, while vulnerable populations were harmed and whistleblowers were ignored, sidelined, and retaliated against,” the House report says.
This led to about $300 million in federal child nutrition funds and potentially $9 billion in Medicaid-related funds lost or placed at significant risk, according to the report.
“Testimony obtained by the committee reveals that Governor Tim Walz and Attorney General Keith Ellison were aware of widespread fraud in social service programs, lied about their knowledge of the fraud, and retaliated against employees who dared to raise concerns,” House Oversight Chairman James Comer, R-Ky., said in a statement.
The report also alleges whistleblower retaliation against state employees who raised red flags at the Minnesota Department of Human Services.
“Whistleblowers within the DHS have alleged that Governor Walz not only knew about this fraud, but that he retaliated against whistleblowers, ‘spending millions on surveilling staff and hiring private investigator (sic) or law firms to silence staff,’” the report says.
The agency’s then-temporary commissioner confirmed to investigators that the agency “used outside entities” to investigate its own staff, according to the report.
“Instead of protecting vulnerable Americans, they handed over billions in taxpayer dollars to fraudsters and threw their own state employees under the bus,” Comer added.
“Governor Walz and Attorney General Ellison are appearing before the committee because the American people deserve clear answers about how this rampant fraud was allowed to flourish under their watch.”
Walz and Ellison have previously denied knowledge of fraud or retaliation against whistleblowers. They have said they are trying to address fraud in the state.
The report said “state agencies had clear authority to suspend or stop payments” to providers suspected of fraud without direction from courts or law enforcement agencies.
“Litigation threats and fear of accusations of discrimination, not legal or regulatory barriers, were repeatedly cited by state officials as the reason for continued funding of entities suspected of fraud,” the House report says.
The bulk of federal fraud convictions in the state took place among Somali residents. However, the state legislative committee told the congressional panel that Somalis were also among the best whistleblowers.
The report later adds that: “Dozens of whistleblowers also reported that they were told not to say anything about the fraud because they would be called ‘racist’ or ‘Islamophobic’ or that it would hurt the state.”
The report said that the FBI never instructed Minnesota officials to continue payments to Feeding Our Future, one of the key charities accused of fraud. Walz said otherwise.
Fred Lucas is chief news correspondent and manager of the Investigative Reporting Project for The Daily Signal. He is the author of “The Myth of Voter Suppression: The Left’s Assault on Clean Elections.”
Reprinted with Permission from The Daily Signal – By Fred Lucas
The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.
No more talk.
Arrest and prosecute NOW
Give no quarter.
Walz, Ellison and the rest of the gang are a fraud, how else would get where they are , all the talk about the fraud is useless blather, if those initiating and encouraging it are not put in prison.
Follow the Money, indict and convict those responsible?
Prosecute these crooked Marxist Democrats, they are evil and Anti-American.
Ellison is aCommunist
They were part of and facilitated the fraud. They should be arrested.
Waltz is a Communist and Anti-American .
Wonder how much Walz and Ellison were getting paid to keep this quiet?? I want to see all who participated in this disgusting theft of our tax payer money end up in a cell for a long time!!
If this all or some of the accusations are proven to be true then they need to be tried in a court of law and let the judiciary system work.
We conservatives in the outer areas of Minnesota are boiling about this–that is, anyone outside the Twin Cities. We so want convictions! They must not forget all the suspicions around Ilhan Omar’s income going from 50 K to 30 mill in one year. How much of that is our taxpayer money?
Trump gets blasted for everything. Walz and all the other Democrats got away with criminal acts nobody comments. JUSTICE?
NO MORE OF THESE RIDICULOUS, USELESS HEARINGS! Of course they’re gonna lie & deny everything, like they ALWAYS do. And NEVER does it go anywhere, NEVER any consequences! These “hearings” are nothing but a ridiculous SHOW they put on, as if they’re doing something! They’ve got plenty of evidence so ARREST THEM!
Prosecute them!
$300 million in feeding children and $9 billion in Medicaid fraud. It appears that MN doesn’t truly need this much money since the fraudsters took it. It’s time to cut all federal funding and arrest these individuals along with AG and the Governor who knew for years about this matter. Deport the individuals that have refugee status since they often travel back and forth to their country so they are no longer a refugee. We need legal immigrants/Americans that want to work and have the American dream. I’m tired of the fraud. I’ve been telling my politicians for years to audit all branches of government down to the penny. Since I’m a treasurer, I can get audited at anytime. I make sure the books balance every month. NO excuses anymore. We need accountability!!!
Walz & Ellison were not afraid of being called ‘racist.’ Especially when the amount of money being stolen was in the billions of dollars! They were in on it! All their bank accounts plus their relatives’ accounts should be checked; as well as any off-shore accounts. And Omar should already be in jail; her sudden wealth is already known!
MN the Fraud State of the Nation with CA#2
If only there were someway to put them in jail, as we know, we’ll never get our money back
30 yrs of HARD LABOR for all involved
IF THE DOJ… can go after an x-president (Trump) with no creditable evidence of a crime … they can surely go after a sitting Governor and Attorney General with the evidence they have now. This hearing is just a procedural step… hand the DOJ your congressional request for indictment and move on!
Minnesota voters & taxpayers would do well if they rid themselves of these crooks they’ve had in office. Crooks can equate fraud. Just give them a little foot in the door and find out.
He should be in Prison .
WHY are there no prosecutions at the highest levels of government? Let’s get the enablers indicted and sent to prison! There is always talk and NO accountability.
So what?
Bondi isn’t going to arrest them so who really cares….
Cogs in the Democrats wheel to power. Of course these clowns will lie in front of Congress. They are good little comrades! I hope they lie, get caught and go to jail in disgrace! They both need a come back to Jesus moment before it’s too late!
How long will this last,trials for all of the fraud that’s been going on in MINNESOTA,get it over with and then come to Illinois.I think that the fraud here is worse.The legal citizens here are getting screwed over,especially the seniors,taxes are out of sight.
What is the next step? Federal felony charge by the FBI?
I am so grateful for AMAC’s reporting, even like the congressional hearings,BUT I would really appreciate thieves in government getting the same “perp walk” that ordinary criminal law breakers get. I’m tired of th talk, and want to see the “walk”. We the people need our tax dollars back, take pensions and holdings from these criminals. I think jail is too good for them.
handcuffs
As is always the case with demigods, NOTHING WILL HAPPEN!
Democrats and their allies are enemies of America and the American people! They are all murders, thrives, child molesters and trash! It’s time to put a stop to them all once and for all!